Goods from AliExpress and Temu may become more expensive: the Cabinet of Ministers wants to introduce a 20% VAT on international parcels
According to a Reuters source close to the negotiations, the issue of parcel taxation has become one of the key points.
“Parcels have now become one of the main issues. Without the adoption of this law, there may be no revision, with all the negative consequences that entails,” the source said.
The essence of the draft law lies in the abolition of the current exemption for most international parcels. Currently, goods worth up to €150 are not subject to VAT. Following the changes, a 20% tax is planned to be levied on virtually all commercial shipments, regardless of value.
The only exception will remain for non-commercial parcels – that is, gifts from relatives or acquaintances abroad. If their value does not exceed €45, no tax will be levied. Consequently, regular purchases from AliExpress, Temu, Amazon or other platforms will become more expensive.
For example, if a product currently costing €100 costs the buyer exactly that amount plus delivery, then after the introduction of VAT, they will have to pay an additional €20 in tax. The Ministry of Finance has already calculated the potential impact of the new measure.
According to the ministry’s estimates, the introduction of VAT on international parcels could bring in around 10 billion hryvnias to the state budget each year. For a country living under wartime conditions and facing an acute shortage of resources, this is a significant sum. This is precisely why the IMF insists on broadening the tax base – that is, increasing the number of sources of revenue for the budget.
Although the draft law has already been submitted to the Verkhovna Rada, its consideration is effectively blocked due to a lack of political support. Many MPs are not prepared to vote for such an unpopular measure.
According to preliminary data, even if the law is passed, there are no plans to introduce VAT on international parcels before 2027. However, the final decision will depend on further negotiations with the IMF, the parliament’s stance and the overall state of public finances.
As a reminder, it was previously reported that Ukraine needs to pass a law introducing VAT on low-value parcels from abroad in order to maintain compliance with the $8.1 billion cooperation programme with the International Monetary Fund. A review of the programme is scheduled for June, and the issue of parcel taxation has become one of the key points in the negotiations.
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